Ghana expects to receive $1.15 billion in financing from the International Monetary Fund and World Bank by the end of February as bilateral creditors move closer to agreeing on debt restructuring terms.
The agreement will pave the way for approving the disbursement of $600 million, which is the second part of the $3 billion rescue plan.
Council approval will also trigger two World Bank disbursements worth $550 million.
Finance Minister, Ken Ofori-Atta, has expressed confidence in reaching an agreement with official creditors on the terms of the debt restructuring, with a meeting scheduled for January 8, Bloomberg reported.
Once an agreement is reached, the IMF Executive Board can evaluate Ghana’s performance under the program that began in May, paving the way for approval of the disbursement of $600 million, the second part of the $3 billion bailout plan.
Despite some delays, Finance Minister Ofori-Atta expects the council to meet on January 18. Council approval will also trigger two World Bank disbursements worth $550 million.
He said the bank had pledged $300 million in budget support and another $250 million to Ghana’s Financial Stability Fund, so “we are in good shape.”
The budget support is expected to be disbursed by the end of this month, while the contribution to the fund, which helps financial institutions affected by local debt restructuring, is expected to arrive by the end of February, according to Finance Minister Ofori. Atta.
In June, Ghana concluded an agreement with banks to restructure $1.36 billion of US dollar-denominated bonds and locally issued cocoa bonds to meet a deadline set by the International Monetary Fund and prioritize discussions with foreign creditors.
In September 2023, the Ghanaian government filed for bankruptcy after failing to pay billions of dollars owed to international creditors in 2022. Ghana is among the three African countries that have failed to meet debt repayment obligations. The country has suspended payments on the majority of its $28.4 billion external debt.